Barton under Needwood residential property owned on a long lease is a wasting asset because a leaseholder only owns the property for a period of years.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Lease extensions in Barton under Needwood can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Barton under Needwood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful negotiations with the landlord of her purpose-built flat in Barton under Needwood, Anna started the lease extension process as the eighty year mark was rapidly coming. The transaction completed in October 2012. The landlord’s costs were kept to an absolute minimum.
In 2011 we were approached by Mr and Mrs. H Thomas who, having moved into a garden apartment in Barton under Needwood in August 2006. The dilemma was if we could estimate the premium would be for a ninety year lease extension. Comparative residencies in Barton under Needwood with an extended lease were in the region of £181,600. The mid-range ground rent payable was £55 billed annually. The lease terminated in 2077. Taking into account 52 years remaining we estimated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 plus costs.
Last Christmas we were contacted by Dr V Williams , who moved into a one bedroom flat in Barton under Needwood in April 2009. The question was if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Comparable properties in Barton under Needwood with an extended lease were in the region of £290,000. The average ground rent payable was £45 invoiced yearly. The lease termination date was in 2097. Given that there were 72 years as a residual term we estimated the premium to the landlord for the lease extension to be within £11,400 and £13,200 not including costs.